News

Bharti Airtel’s net profit drops 72% in Q4 2016-17

"The sustained predatory pricing by the new operator has led to a decline in revenue growth for the second quarter in a row. The telecom industry as a whole also witnessed a revenue decline for the first time ever on a full year basis.

"The deteriorating health of the industry was compounded by the tsunami of incoming voice traffic from the new operator as a result of which significant investments had to be made just to carry the incoming traffic on our network," Gopal Vittal, MD and CEO, India and South Asia, said in a statement.

"Our long term commitment to provide the best experience to our customers continues to drive all our actions in every single aspect of the business. This belief coupled with brilliant execution of our people has led to acceleration in market share in an industry that is now rapidly consolidating," he added.

The company's overall customer base in the fourth quarter stood at 372.4 million across 17 countries, up 8.5 per cent as compared to the corresponding period in 2015-16.

The consolidated total revenues in the quarter ended March 31, 2017, was at Rs 21,935 crore, down 8.8 per cent as compared to the corresponding period in 2015-16.

Bharti Airtel's India revenues dropped by 7.1 per cent, while it gained in the African market with 2.6 per cent increase in revenue.

For the full financial year 2016-17, its net profit dropped by 37.4 per cent to Rs 3,800 as compared to Rs 6,077 crore in the previous fiscal.

Its consolidated total revenues for 2016-17 stood at Rs 95,468 crore, up 1.1 per cent as compared to 2015-16.

The company's consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) for 2016-17 was at Rs 35,621 crore, up by 4.3 per cent as compared to 2015-16.

"Acquisition of Telenor operations and Tikona's business further strengthens the pan India spectrum footprint," the company said in a statement.

Tag Cloud

Tags

About Us

The Finapolis helps you grow your money. We offer insightful journalism, credible research and actionable advice suitable to every Indian taxpayer, making us a one stop destination for your personal finance needs.

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.